Ivory Coast is positioning itself as a pivotal energy hub in West Africa with ambitious plans to expand its refining capacity significantly. The state-owned refiner, Société Ivoirienne de Raffinage (SIR), aims to develop a new refinery with a capacity of 170,000 barrels per day (b/d). Raphael Souanga, Director of Development and Energy Transition at SIR, disclosed these intentions during ARDA Week 2025 in Cape Town on April 9.
Preliminary surveys are reportedly complete, and a shortlist of 10 potential partner companies has been established. However, the subsequent steps in the planning process remain somewhat unclear. This new facility will supplement SIR’s existing refinery in Abidjan, which currently processes 75,000 b/d and is set for an upgrade to 100,000 b/d.
The Abidjan refinery is already noted as one of the most efficient in Sub-Saharan Africa, contributing to Ivory Coast’s unique status as a net exporter of refined products in the region. With one of Africa’s highest GDP growth rates, the nation is increasingly drawing interest from energy investors, driving SIR to pursue more extensive growth plans. Additionally, demand for oil products in Ivory Coast is on the rise.
S&P Global Commodity Insights projects a demand increase of approximately 6% in 2024, reaching around 65,000 b/d, and potentially climbing to nearly 80,000 b/d by 2030. The existing refinery has traditionally relied on crude oil imports from Nigeria and South America to meet its needs. On the sustainability front, Souanga outlined SIR’s commitment to transitioning towards high-quality fuels and reducing emissions.
Plans include the construction of a new diesel desulfurization unit by May 2025, which will enable the production of low-sulfur diesel. Additionally, upgrades aimed at lowering benzene levels in gasoline and transitioning from oil to gas for electricity are also in the pipeline. Despite these ambitious plans, SIR faces challenges in securing the necessary investments.
The recent withdrawal of TotalEnergies from the existing SIR refinery underscores the difficulties related to financing essential upgrades. Sahara Group, which acquired TotalEnergies’ stake, noted that financing quality-focused upgrades remains a significant challenge, even though development funds play a critical role in funding long-term projects. SIR has estimated a EUR 1 billion ($1.1 billion) budget for its upgrades, but updated figures on financing are still pending.